impact survey report - motc qatar’s ecommerce portal · the ecommerce penetration rate in qatar...
TRANSCRIPT
1 | theqa.qa
Impact Survey Report Preferences of Online Shoppers in Qatar
MARCH, 2019
2 | theqa.qa2 | theqa.qa
1. Introduction
2. Survey Overview
3. Key Insights & Detailed Results
Table of Contents
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1. Introduction
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International Merchants
62%
Qatari Merchants except QA
14%
Qatar Airways24%
62
16 22 16 8
38
84 78 84 92
Qatar Turkey Germany UK USA
700Mn USD
Qatar’s estimated lost
sales to international
merchants in 2016
Domestic
International
A trustmark program can help
tackle one of the key factors, trust
in online shopping, as well as
address other elements that
contribute to helping Qatar realize
its potential in domestic
eCommerce sales
E-Commerce in Qatar | Domestic E-Commerce Sales
Despite these positive growth trends in eCommerce, Qatar’s domestic e-sales are lagging behind
international averages; instilling trust in online shopping is one key local adoption effort
16%
Benchmarked average
of domestic sales
46%
Local Qatari merchant sales are
44% lower than the average of
local merchant sales of the
selected benchmarked countries
Factors of increased domestic
sales in benchmarked countries:
Advanced marketing
& advertisingEnhanced digital
infrastructure
eCommerce market
maturity
Consumer trust culture
in online shopping
Robust consumer
protection & e-regulation
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E-Commerce in Qatar |
Introducing Theqa
Theqa is an active program that will certify local online merchants based on a
set of identified criteria and monitor its members adherence to the code of
conduct
Theqa will contribute to an enhanced online
user experience with local online merchants
Theqa will help increase consumer trust in local
eCommerce merchants
Theqa will contribute to decrease eCommerce
sales leakage to online international merchants
and redirect it to local online merchants
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2. Survey Overview
7 | theqa.qa7 | theqa.qa
Survey OverviewA group of 500 residents in Qatar were surveyed online in order to gain key insights and trends to find out shoppers’ needs
and wants. This data was collected to contribute to reducing the international eCommerce sales leakage.
Objective
Sample Pool
Methodology
• Measure the incidence of purchasing online:
Reasons and important factors for shopping online
Preferred channels and methods
Average spend and frequency
• Understanding the reasons for:
Not purchasing online / using e-commerce
Preferring international e-commerce companies to local
Lack of trust to local e-commerce
• Sample size: 500
• Nationality: Qatari, Western, Asian, Arab, Other
• Age: 18 – 50 years old
• Demographics:
75% Expats / 25% Local
76% Male / 24% Female
• Income: All income ranges (From below QAR 2,000 to above QAR 48,000)
• Run online through a partner market research firm: lpsos
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3. Key Insights &
Detailed Results
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Key Insights
37%Electronics &
Taxi/Limo
Ads26%
31%Online
Chat
Mobile
Application
Product variety
& availability
Are the most
frequently
purchased
products &
services online in
Qatar
Of respondents have
purchased a
product or service
online in Qatar (past
12 months)*
Is the preferred
channel for online
shopping as per
over 50% of the
respondents
Of the respondents
make an online
purchase from local
merchants at least
once a week
Is the preferred
means of
communication to
learn about new
online shops & new
arrivals/promotions
Of respondents
have voted
that they
do not trust
local online
shops
Are the primary
reasons online
shoppers prefer
international online
shops
Is the most preferred
method of
communication for
local online shoppers
when it comes to
inquires & complaints
At an e-commerce penetration rate of 37%, e-commerce in Qatar holds promising opportunities for the ecosystem to both seize and
benefit from
Of respondents
prefer shopping
from “marketplace”
platforms vs.
“single vendor”
platforms
76%
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E-commerce Penetration in Qatar 2018 vs. 2019
Q1. Online shopping penetration in Qatar
46%
37%
17%
I have not purchased a product or service online in the past 12 months, but I am willing to do so
I have purchased a product or service online in the past 12 months
I have not purchased a product or service online in the past 12 months, and I am not willing to do so
The eCommerce penetration rate in Qatar in 2019 is 37% versus 15% in 2018, with a similar distribution between shopping in the retail
industry and service the industry for 2019
2018 201944%
41%
15%
Key Takeaways
The eCommerce penetration rate in Qatar
which reflects the number of shoppers who
have purchased a product or service online in
the past 12 months was 15% in 2018
compared to 37% in 2019.
This number has increased to reach more than
double the percentage from last year. This may
be explained by the increasing number of
eCommerce players and increase in marketing
which we have noticed.
From the 37% who have shopped online in
the past year, there are 14% who always
bought a product, 17% who sometimes
bought a product and 6% who never bought a
product; whereas 14% have also always bought
a service, 15% sometimes bought a service
and 8% never bought a service online.
Of the remaining 63% who do not shop online
in 2019, 17% are willing to shop online, with
the remaining not potentially having the
inclination to shop online.6% 8%
17% 15%
14% 14%
Retail Services
Never
Always
Sometimes
Note: From the 37% who shop online
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Shopping Frequency 2018 vs. 2019
Once a month
25%
28%26%
20%
At least once a week
31%
36%
Couple of times a year
10%
23%
Once a year
Qatari Shop
International Shop
Q2. Shopping frequency: international vs. local online shops Key Takeaways
Comparing shopping frequency from 2018 to
2019, we notice a slight increase in shopping
at least once a week with Qatari merchants,
this may be explained by the increase in
transportation and food delivery services used by
shoppers.
We also notice a shift from once a month and
couple of times a year towards once a year for
international shops leading to one of MoTC’s
main objectives to reduce international leakage.
From 2018 to 2019, we notice a slight increase in weekly shopping from local merchants vs. a shift from monthly and a couples of times a
year in 2018 to once a year in 2019 for international merchants
Once a month
22%
At least once a week
40%
Once a yearCouple of times a year
33%
5%
Frequency
2018
2019
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International vs. Local Online Shops 2018 vs. 2019
22% 13%32%
11% 14%
36%
28%35%
37%
36% 35%
42%63% 52%
31%53% 51%
I do not trust local shops
There aren’t any popular local
online shops in the market
International e-commerce
shops are cheaper
than local online shops
9%
International e-commerce
shops provide a better
experience than local shops
International online shops have more varity and
avaliablity, I cannot find the product in local
online shops
International e-commerce
shops are more secure in terms of payment and
data privacy
Agree
Neutral
Disagree
Q3. Point of view of international vs. local online shops Key Takeaways
Based on the data from 2018, there has been an
increase in “agree” for all the statements about
international shops vs. local shops in 2019 except
for the price advantage.
There is a high increase in 2 statements which
highlight the need of an eCommerce Trustmark in
Qatar which are “I do not trust local shops” and
“International eCommerce shops are more secure
in terms of payment & data security”
The top 3 answers for international vs. local sites
are that customers believe “International online shops
have more variety and availability”, “International
eCommerce shops provide a better experience than
local shops” as well as “International eCommerce
shops are cheaper than local online shops”.
There is a significant increase in not trusting local shops and seeing international shops as more secure between 2018 and 2019 for
online shoppers in Qatar, highlighting the need to an eCommerce Trustmark
40%11%
35%19%
31%
30% 35%
54%
53%57%
29%59% 58%
11%38%
24%
There aren’t any popular local
online shops in the market
I do not trust local shops
International e-commerce
shops are cheaper
than local online shops
International e-commerce
shops provide a better
experience than local shops
International online shops have more varity and
avaliablity, I cannot find the product in local
online shops
International e-commerce
shops are more secure in terms of payment and
data privacy
7% 9%
2018
2019
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Online Shopping Spend 2018 vs. 2019
RETAIL SERVICE
Q5. Average amount spent per transaction Key Takeaways
In 2018 the most recurrent average amount
spent per online shopping transaction was
QAR 250-500 whereas in 2019, the most
recurrent range for retail is QAR 50-250
and less than QAR 50 for services. We
see a change in the behavior of spending
where people seem to use online shopping
for purchases of lower value.
If we were to compare purchases under
QAR 250 between 2018 & 2019, we notice
a significant increase from 21% to an
average of 50% whereas purchases with a
higher value have decreased between
2018 and 2019.
We assume that the range for the service
industry has a low value due to the
increasing accessibility of taxi/limo hailing
along with its competitive pricing.
More than 25% of online shoppers spend QAR 50 to QAR 250 on products and about 30% spend less than QAR 50 on services in 2019
compared to only 21% spending less than QAR 250 in 2018.
17%
27%
17%
16%
9%
7%7%QAR 1,500-2,500
QAR 500-1,000
< QAR 50
QAR 50-250
QAR 250-500
> QAR 2,500
QAR 1,000-1,500
26%15%
12%
7%
6%5%
QAR 1,000-1,500
QAR 500-1,000
QAR 1,500-2,500
< QAR 50
QAR 50-250
QAR 250-500
> QAR 2,500
29%
21%
34%23%
13%
9%QAR 1,000-1,500
QAR 250-500
< QAR 250> QAR 1,500
QAR 500-1,000
2018
2019 2019
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Preferred Channel for Online Shopping
Key Takeaways
Compared to 2018, there is a very
significant decrease in online shoppers
who prefer using a desktop for online
shopping in 2019.
Over 50% of respondents prefer using a
mobile application for online shopping
which highlights the importance of
investing in mobile applications. It is
important to provide the user with a
seamless experience and ensure user
experience is given special attention. As
we know mobile phones have made online
shopping easier and more accessible at all
times.
There is a significant change in the proffered channel to shop online in Qatar with 57% of online shoppers preferring a mobile application,
27% preferring a mobile website and only 16% preferring a desktop website in 2019 as compared to 51% preferring desktop in 2018
Q8. Preferred channels for online shopping
57%27%
16%
Mobile ApplicationMobile Website
Desktop Website
49%51% MobileDesktop 2018
2019
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Shopping Preferences: Preferred Platform & Most Procured
Q4. Using e-commerce to procure products vs. services
40%
26%
34% Products (Such as: Electronics, Apparel, etc.)Retail (such as electronics, apparel, etc.)
Services (Such as: Food delivery, Taxi hailing, Airline travel, etc.)Services (such as food delivery, taxi hailing, airline travel, etc.)
Products and servicesRetail & services
Key Takeaways
Over 75% of online shoppers prefer
shopping from a “marketplace”
platform rather than a “single vendor”
platform as the marketplace will provide a
bigger variety of products and brands to
choose from. We encourage businesses to
join or create more marketplace like
platforms to meet shoppers'’ preferences
We notice that as little as 26% of online
shoppers only purchase services implying
that retail is still the main industry online
shoppers are after. In fact, 40% procure
only from the retail industry, whereas
34% purchase from both industries.
A marketplace platform (76%) seems to be preferred over a single vendor platform in Qatar, along with a strong prevalence of retail as
compared to services with only 26% purchasing services only
Q9. Preferred type of platform for online shopping to shop from
76%
24%
Marketplace
Single Vendor
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Online Shopping Frequency
Never
Sometimes
Always
Fa
sh
ion
& L
ife
syle
Ho
tel
Hou
se
hold
Pro
du
cts
Ele
ctr
on
ics
Dig
ita
l C
on
ten
t/B
ooks
Be
au
ty, H
ea
lth
, S
po
rts
Au
tom
otive
Acce
sso
rie
s
Fo
od
Deliv
ery
La
un
dry
Hou
se
hold
Cle
an
ing
Car
Wash
Ta
xi/L
imo
Airlin
e T
rave
l
Q6 & Q7. How often these products/services are purchased Key Takeaways
The top 4 most frequently bought
products/services are “Electronics”,
“Airline travel”, “Taxi/Limo” and “Food
delivery”.
In fact from the 37% who shop online, 19%
always purchase electronics, 18%
always purchase airline tickets, 18%
always use taxi/limo services and 17%
always use food delivery.
The least sought products/services are
”Car wash” and “Laundry” used
through online platforms.
The top products and services bought online in Qatar are electronics, airline travel, taxi/limo and food delivery whereas the lest sought
products and services are car wash and laundry
6% 4% 6% 4% 5% 3% 4% 6%
11%
19% 18%
14%
14%
19%13% 15%
16%
18%
14%
18%
11%18%
16%
17%
10%
17%18%
10%
13%
10%
11%
10%
13%
14%
14%
15%
18%
16%
2%
Always
Sometimes
Never
Note: From the 37% who shop online
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Factors Considered for Online Shopping
15% 15% 15% 13% 11% 11% 11%
32% 37% 36%33% 41% 34% 37% 38% 37%
53% 48% 49% 58% 50% 53% 52% 51% 52%
Free delivery
9%
Price competitiveness
Same day delivery
Possibility to return & exchange
9%
Accurate product
information & description
along with images
Cash on delivery
Personal account that
records delivery address, previous
purchases, size
After-sales support
Customer reviews & ratings
Low
High
Medium
11% 14% 11%
38% 31% 35% 38% 37% 38% 35% 40%
51% 60% 55% 48% 54% 52% 56% 49%
Seal of approval from
the Qatari gov. that
confirms that the merchant
is safe to shop from
Website accessibility
Unique product
Number of debit/credit
cards accepted
9% 10%
Language: Arabic & English
9% 9%10%
Product packaging
Special offers online vs. in-store
Loyalty program
Q12. Factors to consider when shopping from local online platform
Key Takeaways
Although all the factors seem
important for online shoppers
when deciding which
platform to shop from, the
top 3 factors that seem to
affect shoppers most are
“Seal of approval from the
Qatari gov.”, “Accurate
product information &
description” and “Special
offers online vs. in-store”.
This again highlights the
need for an eCommerce
trustmark in Qatar to provide
shoppers peace of mind.
The highest ranked factor that affect online shoppers when considering which platform to shop from is a deal of approval from the Qatari
government, emphasizing the need of an eCommerce trustmark in Qatar
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Preferred Means of Payment & Delivery Time
8%
15%
29%
48%
Debit Card
Pre-paid Card
Credit Card
Cash payment on delivery
Q10. Preferred means of payment for online shoppingKey Takeaways
Cash payment upon delivery seems to be
the preferred means of payment followed
by credit card payments in Qatar. It is
important for merchants to have several
means of payment on their platform, specially
cash on delivery.
40% of local online shoppers believe that
acceptable delivery time is 1 to 2 days
whereas one third of online shoppers
believe delivery should be on the same
day given it is a local purchase.
Delivery time is perceived as an important
component that contributes to poor customer
service and should be given its importance
when considering a customer journey.
Almost half the online shoppers in Qatar prefer settling their payment through cash on delivery and about 75% believe delivery from local
online shops should be on the same day or within 1-2 days
34%
40%
15%
10%
1 - 2 Days
Same Day3 - 5 Days
5 - 7 Days
Q14. Acceptable range of delivery time for a product from a local online shop
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Preferred Channel of Communication
Q15. Preferred channel of communications for new online shops, new arrivals and
promotions in QatarKey Takeaways
The top 3 means of communications
online shoppers prefer to learn about
new online shops, new arrivals and
promotions are “”Facebook ads”,
“Instagram ads” and “Google ads”.
The top 3 channel of communication
fall under digital marketing
highlighting the importance of
digital transformation in
eCommerce like all industries.
The least preferred channels of
communication for new online shops,
new arrivals and promotions are
“Booth/activation”, “Radio” and
“Influencers”.
The highest ranked channel of communication for new online shops, new arrivals and promotions is by far Facebook ads, followed by
Instagram ads and Google ads at the same average
62%
19%
35%
12% 14%
20%17%
10%
21%
33%
6%1%
0%
20%
40%
60%
Snap
chat
ad
s
Face
bo
ok
ads
Infl
uen
cers
Inst
agra
m a
ds
Ou
tdo
or
med
ia
New
spap
er
Mag
azin
e
Rad
io
Tele
visi
on
Go
ogl
e /
oth
er s
earc
h e
ngi
nes
Oth
er
Bo
oth
/act
ivat
ion
20 | theqa.qa
Preferred Means & Frequency of Communication
27%
9%
36%
28%
Inquiry form
Telephone
Online chat
Q16. Inquires and complaints for online shopping
Q17. Receiving/a newsletter by email for online shopping
Key Takeaways
The majority of online shoppers prefer
having their inquiries and complaints
addressed though an online chat. It is
the most convenient communication
tool and offers a quick response.
The least preferred tool for inquiries
and complaints is the inquiry form
followed by email, probably due to the
absence of an immediate response
and longer turn-around time.
More than 50% of online shoppers
prefer receiving a weekly newsletter
as compared to 20% for a monthly
newsletter, implying that online
shoppers appreciate frequent
engagement with online shops.
Online shoppers in Qatar prefer submitting inquiries and complaints through an online chat and seem to appreciate frequent engagement
with more than 50% of online shoppers wanting to receive a weekly newsletter
22%
55%
23%
Monthly
Weekly
Never
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Poor Customer Service Factors
Key Takeaways
Poor customer service can be enhanced through little changes with the most contributing factor in Qatar being lack of product availability
followed by a complex payment process and a lengthy ordering process
11%
47%46%
36% 41%
Complex payment process
18%
Lack of product variety
48%
Lack of product
availability
39%
14%
Lengthy ordering process
Lengthy delivery
time
47%
37%
16%
46%
40%
14%
Limited payment options
18%
46%
38%
16%
45%
37%
No option to return
a product
Q13. Factors contribute to poor customer experience in online
shopping
High
Medium
Low
Although all the factors seem to contribute to
poor customer service the top 3 factors
include “Lack of product availability”,
“Complex payment process” and
“Lengthy ordering process”.
Online merchants should try investing in a
couple of these factors to ensure their
customers enjoy their journey through the
online platform and return to shop online.
We advise merchants to consider the one-
click payment and reducing the ordering
steps on their platforms
22 | theqa.qa
Desired Products to Shop Online
Q11. Types of products & services desired to see more of
online
Online shoppers in Qatar would like to see more electronics, food & groceries, fashion & lifestyle and airline travel online and seem to
care less about household services, automotive accessories and digital content online
32%27% 27%
17%
32%
20%
49%
23%32%
26% 29%
19%
1%0%
20%
40%
Ho
use
ho
ld S
ervi
ces
Ho
use
ho
ld P
rod
uct
s
Air
line
Trav
el
Fash
ion
& L
ifes
tyle
Taxi
/Lim
o
Ho
tels
Foo
d &
Gro
ceri
es
Ente
rain
men
t &
Le
isu
re
Dig
ital
co
nte
nt
Ele
ctro
nic
s
Bea
uty
, Hea
lth
, Sp
ort
s
Au
tom
oti
ve
Oth
er
Key Takeaways
Online shoppers seem to want to have
more online shops in Qatar that sell
Electronics, Food & Groceries, Fashion
& Lifestyle and Airline Travel.
The least preferred categories to have
more of on online platforms in Qatar are
“Household services”, “Automotive” and
“Digital content”.
